Regulators have made it clear in recent guidance: As the economic fallout from the coronavirus continues, capital plans will be under the microscope at your next exam. And while most community banks have a capital plan, way too...
CECL vs COVID: Q1 Data Reveals What Drove Loan Loss Reserves for Publicly Traded Banks
Let’s face it: Publicly traded banks that implemented the new current expected credit losses (CECL) accounting standard during the COVID-19 pandemic faced a huge set of challenges. But what really drove their decisions about how...
What Community Banks Should Glean from the Fed's Stress Tests
The Federal Reserve announced last week that it was suspending stock repurchases and limiting the amount of dividends the largest banks can pay in the second quarter. The Fed made this decision after the large banks “passed” the...
News Alert: Examiners to Focus on Banks' Ability to Manage COVID-19 Risks
CEOs take note: Bank examiners will be looking at how well your management team has assessed risks from the COVID-19 environment, whether and how you have changed your business practices, and if you have addressed these changes...
Sleepless CEO Nights: Say Goodbye to Traditional Pricing Benchmarks
The last several months of the COVID-19 crisis have heaped an enormous and unexpected level of stress and complexity onto bank CEOs. Managing potentially serious credit problems with clients in various industries, learning to...
Updated: Additional Data Shows Most Banks Saying No to CBLR
As we told you last month, two out of every three community banks chose not to opt into the Community Bank Leverage Ratio. We've updated our numbers as more banks file their Call Reports, but the trend continues. The latest...
The Shortfalls of Loan-Level CRE Stress Testing in a COVID-19 World
The coronavirus has presented the first threat to community banks since the 2008 financial crisis. For the first time, stress testing is a real exercise. What community banks across the country are discovering with dread right...
News Alert: Two out of Three Banks Say No to the Community Bank Leverage Ratio
Thanks, but no thanks: That’s the resounding message from community banks about the new community bank leverage ratio framework. Two out of every three banks chose not to opt into the new framework, according to an exclusive...
When the Hypothetical is Now: The Importance of Pandemic Stress Testing
After the 2008 Great Recession and prior to the coronavirus pandemic, regulators turned to stress testing to establish bank capital adequacy levels. The Federal Reserve established a program called the Comprehensive Capital...